Loyalty Programs
Acquiring a new customer costs 5x more than retaining an existing one.
Web3 primitives build trust/goodwill/loyalty through shared ownership economy incentives.
Current State
Leading brands are innovating with onchain primitives to create experiences that allow members to participate in a series of entertaining, interactive activities called Journeys. Once a Journey is complete, members will earn collectible Journey Milestones (NFTs) and Loyalty Points that open access to future benefits and customised experiences based on a deeper connection of knowledge and trust.
Traditional loyalty programs have not changed in decades and are outdated, & one-dimensional with 85% of rewards going unredeemed.
77% of consumers saying they will stick with brands that offer a loyalty program.
Opportunity
Web3 primitives allow brands to form deeper permissioned connections with customers to build trust and reward strong loyalty with a share in ownership and collaboration on the direction of the brand.
This is a win-win for both the brand and the customer as customer acquistion costs are reduced, and customers feel a deeper sense of identity.
Community Building
Establish incentives that lead to decisions and actions that build better communities based on trusted connections.
Communities create tokens, tokens don't create communities.
Starbucks
Explore your stores encouraged members to visit different Starbucks locations and make a qualifying purchase. This activity had an additional community challenge component. If 8,000 unique US Starbucks stores were visited by the end of the year, the whole community would receive a bonus. This goal was met in one week (the challenge launched July 26th).
See Starbucks for more.
Shopify
Tech
MarTech Tools to build onchain loyalty programs.
Protocols
Minting is the native business model for Web3.
POAPs
Proof of Attendance Protocol (POAPs), are ERC-721 tokens that prove attendance of life experiences.
Think of them as a lanyard you take home from a conference, but recorded on the blockchain.